3 weeks industry standard to wait for a cheque?

[bucket]

Not necessarily. Delivering pulses to a processor presents a lot less cost of execution than taking it to a terminal and from there needing to put the grain on a rail car and send it to Vancouver. Its the same reason the crushers pay more for canola than the elevators going to port.

Explain that please....

Wouldn't the bulk guys like Richardson do it for less?

That's interesting. And if correct that should put the processor on better financial to pay at scale?

[Goodtime]

Oh yes the joys of dealing with some of these outfits in the past....10 day payment turns into 8 weeks," oh we are moving to a different office, cheque will delayed." Another famous line, " our admin assistant is on holidays and she cuts the cheques so will be delayed."...…"oh we sent the cheque out it must have gotten lost, we will send another one next week!" I had to many sleepless nights to deal with these outfits, G3, Richardson, Viterra pay their bills on time.

[the big wheel]

Not necessarily. Delivering pulses to a processor presents a lot less cost of execution than taking it to a terminal and from there needing to put the grain on a rail car and send it to Vancouver. Its the same reason the crushers pay more for canola than the elevators going to port.

The processor cleans it and puts it in a car or container. So??? They all get the same money to give to us for a raw product what they do after doesn’t matter to me. Just because they haven’t so called processed it at some point it will be.

[farmboy44]

Explain that please....

Wouldn't the bulk guys like Richardson do it for less?

That's interesting. And if correct that should put the processor on better financial to pay at scale?

you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops

[farmboy44]

you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops

Maybe im off base im sure Dave and guys with better experience on the industry side can explain better

[bucket]

you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops

So it still begs the question. ...why do they not have the ability to pay at scale?

Isn't that what the CGC bonds are for to ensure?

[Blaithin]

One would think the GrainCos have higher cost of operating, in general, than a crusher.

They have the inland terminals - cost of upkeep, cost of running, plus staffing; then they have the ports - all the same stuff; then they have demurrage costs that can build up, fines, products that don’t meet sale specs, etc.

Why wouldn’t they try to get the product cheaper whenever they can to help offset their outflow.

A crusher in comparison generally only has a handful of locations to support and very little logistically that could screw them over.

[the big wheel]

you know as good as I do cost of freight is always on us! $60/mt rail freight + $20?? ocean etc costs add up to get it to a processor overseas for the line companies. If its processed on site the freight costs are zero (end user pays for product out)... Line companies model isnt built for specialty crops

How many times does the purchase at rhe inland terminal go to a processor? Oh wait we don’t know because there is no reporting as such.
Kinda like feed barley bought that ends up malt in China? It was malt when it was bought

Freight should have no bearing on price difference other than rhe screenings stay here.
It all gets shipped out and the same people pay the freight

[Guest]

they do it because they can
tweety has it right

[burnt]

they do it because they can
tweety has it right

Did we just right here witness the fulfillment of the proverbial crystallization of the surface of a vast sea of boiling brimstone?